Continental Resources’ relocation is a big win for downtown Oklahoma City

Oklahoma City is all abuzz this morning as news broke yesterday afternoon that Continental Resources will relocate its operations from Enid to downtown Oklahoma City. After months of speculation, Continental announced that it will become the new tenant in Devon Energy’s current home of 20 N. Broadway. When news leaked of the building’s sale last October, Continental, Devon and city officials worked hard to keep the news secret that Continental was the true buyer until the oil and gas firm was ready to make its announcement to its employees and the city of Enid.

New home of Continental Resources

According to Continental officials, the company intends to complete its relocation by the end of 2012, which is the expected time when Devon will complete its relocation to its new 50-story tower that is currently under construction in downtown Oklahoma City. Harold Hamm, chief executive officer of Continental, said the move is due to Continental’s recent growth and need for more space and employees.

Continental’s decision to relocate to downtown Oklahoma City is a big win for downtown and the city as a whole. Furthermore, Continental’s move will also have numerous positive effects on the city’s commercial real estate market, especially in the downtown sector. Here are a few of the ways that Continental’s relocation will positively impact the local commercial real estate market:

1. New jobs. Continental plans to relocate 250 employees from Enid and hire even more once its relocation to Oklahoma City is complete. Anytime a company relocates to a city with new employees, it is beneficial to both the city’s commercial and residential real estate markets as these employees will need a place to live and shop. Moreover, some of these new employees may make prime residents for some of the recently completed downtown housing projects.

2. Synergy. Continental is the perfect tenant for downtown Oklahoma City in that the firm will now join two of the city’s largest oil and gas firms in the form of Devon Energy and SandRidge Energy in anchoring the downtown office market. Even though Oklahoma City has diversified its economy since the days of the oil bust, energy is a driving force in the city’s economy and in the downtown office market. Having three of the state’s largest energy firms in one area will prove to be beneficial for the economy and in growing the downtown office market. Other corporations will be attracted to this synergy that will be created, which will help in improving downtown occupancy.

3. Investment. Much like the way Devon Energy and SandRidge is currently investing millions in building new campuses in downtown and improving their surrounding areas, do not be surprised if Continental will in the future invest millions of its own in improving its facilities and in the surrounding areas of its new campus.

4. Expansion. Probably the most exciting news from yesterday’s announcement was the fact that Hamm said Continental will most likely triple its work force by 2015 and have need for additional space. Not only does the move ensure that Devon’s current building will not be vacated, but it also gives hope that Continental will help in backfilling some of the spaces Devon will vacate in such other downtown buildings as Cotter Ranch Tower, First National Center and Corporate Tower.

It is important to note that downtown vacancy will increase when Devon completes its relocation to its new tower next year. It is inevitable, but downtown stakeholders should not fret over the numbers. The fact that Devon’s current 307,288-square-foot building will not go on the market as vacant is tremendous. Furthermore, the aforementioned synergy that will be created with Continental’s arrival should lure more companies to downtown and join Continental in leasing that excess space caused by Devon’s relocation over the next few years.